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Cellphone users in Maharashtra might soon have to pay a local cess, as the state government explores innovative ways to pull itself out of a financial quagmire.
Reeling under a severe financial crisis, the Bharatiya Janata Party (BJP) and Shiv Sena government is exploring a number of steps for additional resource mobilisation, such as impositing a monthly local cess of Rs 10 on mobile users, hike in penalty in various sectors and development of 386 hectare of land spread over Greater Mumbai.
State Finance Minister Sudhir Mungantiwar, who has blamed the 15-year Congress-Nationalist Congress Party government for the present state of finances, told Business Standard: “The situation is quite delicate. Therefore, I have discussed with the department officials various ways for additional resource mobilisation and asked them how they will be implemented during course of time.” These options are being currently discussed when Maharashtra’s revenue deficit has surged to Rs 26,000 crore as on date from Rs 4,500 crore in March last year. The revenue deficit may rise to Rs 40,000 crore by end of the current financial year, as the government has announced various packages to provide much-needed relief to farmers hit by natural calamities.
Maharashtra’s public debt is recorded at a record Rs 3.44 lakh crore and the government has already imposed 40 per cent cut in the Plan expenditure due to the paucity of funds. Mungantiwar admitted that state government has limited powers to impose a new tax or cess on mobile users.
“There are about 120 million mobile users in Maharashtra. I have asked my department officials whether or not the government can impose say a monthly local cess of Rs 10 which will enable state to raise Rs 120 crore per month and Rs 1,440 crore annually.” He said mobile users are unlikely to mind paying the proposed cess.
Also, as land in the state capial is scarce, the 386 hectares in Greater Mumbai can bedeveloped in phasewise manner.
“The development of 386 hectare of land in Greater Mumbai will help mobilise substantial money, which in turn can be used for a slew of development schemes and projects especially in rural Maharashtra,” said the minister.
Mungantiwar said the government can mobilise funds by settling a large number of sales tax/VAT appeals worth Rs 25,000 crore. Besides, the minister said the government may bring in new rates for the renewal of lease of Nazul lease plots which are situated in Nagpur and Amravati divisions and which were earlier part of Central Province and Berar.
Furthermore, Mungantiwar said the penalty and fine recovered in various sectors from different departments are quite low. In some cases, they range between Rs 10 and Rs 25. “For example, the government annually spends Rs 11,000 crore on the salary, wages and pensions of nearly 2 lakh police personnel. However, the police department recovers mere Rs 564 crore annually from penalty and fine. The police department has assured that it will increase the amount to Rs 1,000 crore annually. Similar rise is expected from other departments too,” the minister said. According to Mungantiwar, the government can raise funds through the development of tourism through public-private partnership model, where the government’s spending will be nil.
“However, this will be possible only after a policy decision is in place,” he said.
Mungantiwar said the government can save money on the fuel consumed on transportation especially by government officials.
He said the expenditure incurred by various government departments and agencies on electricity can also be reduced and decision will be taken soon for the promotion of green buildings and installation of LED lights in new buildings and establishments.
